Building strategic agility through user-driven innovation: the case of the Finnish public service sector

This paper investigates how to build strategic agility through the lens of user-driven innovation. Drawing on survey data collected in the public service sector in Finland, our study suggests that the strategic rigidity of public service organisations, assessed according to their strategic sensitivity, resource fluidity and leadership unity, can hamper their effective adoption of the user-driven innovation approach to build strategic agility. We propose a 4C model of building strategic agility through user-driven innovation, addressing the need of taking actions in four areas: commitment, competences, communications and climate. Our research highlights that actions in the four dimensions, which are closely interlinked and reinforce each other, should involve actors at different levels both internally and externally.     

Managing resource-constrained innovation in emerging markets: Perspectives from a business model

This study examines the organization of resource-constrained innovation from a business model perspective. Using a multiple case study design, we demonstrate that the ability to organize resource-constrained innovation is built on cost, good-enough, frugal, and reverse innovation capabilities. Cost innovation does not always lead to a new product, rather it is a way to reduce operational costs through the value creation activities of a business model to achieve resource-constrained innovation. Good-enough innovations are developed through existing platform reengineering and localization through value creation activities. We demonstrate that frugal innovations are developed based on new product architectures and applications that can create completely new market segments to compete against non-consumption. Reverse innovations refer to frugal innovations that are characterized by higher market novelty because they create completely new market segments in developed and developing markets for value capture.     

Identifying barriers to wind energy diffusion in Colombia: A function analysis of the technological innovation system and the wider context

By utilizing only half of its total technical wind energy potential, Colombia would be able to supply the entire country's demand for electricity. Yet, Colombia has an installed capacity of 19.5 MW from wind power, representing about 0.4% of the total technical potential. In this paper, the slow diffusion of wind energy in Colombia is analyzed, by evaluating the functions of the Technological Innovation System (TIS) along with the influence of the wider context (Landscape Factors). A combination of expert evaluations (structured and semi-structured interviews) and a history event analysis revealed existing weaknesses in the TIS functions and influence from the wider context (landscape level). Several factors at the landscape level were found to have a significant influence on the TIS functions for wind energy in Colombia. Policy recommendations are provided to address barriers in order to advance the diffusion of wind energy in Colombia.     

Non-linear dynamics of innovation activities over the business cycles: Empirical evidence from OECD economies

This study examines the non-linear and asymmetries of innovation activities in thirty-six OECD countries for the period 1981Q1-2019Q4. The impulse response function and historical decompositions were estimated to check the cyclical property of innovation activities (R&D expenditures, residential patents, non-residential patents, and international collaboration in technology development) during the boom and recessions. The impulse response function provided three important results. First, the results indicated that the R&D expenditures moves pro-cyclically in response to the gross domestic product (GDP), exports, imports, and gross fixed capital formation in both the boom and recession periods. Second, the findings suggested that patents (residential and non-residential) move pro-cyclically in response to GDP, exports, imports, labor force, R&D expenditures, and gross fixed capital formation shocks in the boom and recession periods. Third, variables including, R&D expenditures, GDP, exports, labor force, imports, and gross fixed capital formation shocks significantly affected patents (residential and non-residential) during the boom and recession periods across the sampled OECD states. Fourth, the results also suggested that the international collaboration in technology development moves pro-cyclically in response to GDP, R&D expenditures, exports, imports, labor force, and gross fixed capital formation shocks in the boom and recession periods.     

The innovation and performance effects of well-designed environmental regulation: evidence from Sweden

This paper provides novel empirical insights into the Porter hypothesis (PH) and its dynamic nature. The PH posits that well-designed environmental regulations induce eco-innovations at polluting firms that improve both their environmental and business performance via ‘innovation offsets.’ We conduct an econometric test of this proposition, using Swedish pulp and paper plants as empirical application. Swedish environmental regulation of polluting industries provides an interesting case because it has been praised, due to containing elements of ‘well-designed’ regulations, for being conducive to accomplishing the ‘win-win’ situation of mutual environmental and economic benefits. The empirical results indicate that flexible and dynamic command-and-control regulation and economic incentive instruments have induced innovation offsets through improved energy efficiency. Our study bears important implications: empirical tests of the PH that do not account for its dynamic nature, and that do not measure ‘well-designed’ regulations, might provide misleading conclusions as to its validity.     

The effects of R&D subsidies and network embeddedness on R&D output: evidence from the German biotech industry

Although policy makers subsidize firms’ R&D projects to increase innovational output in an industry, region, or country, it remains unclear whether such subsidization triggers additional R&D efforts or crowds out private investments. To address this question, we assess the effectiveness of subsidization for individual and collaborative research in the German biotech industry while also examining the relevance of network embeddedness for patent output. Our results indicate that subsidies do lead to increased patent output, with additional benefits from involvement in more than one project. However, the amount of money is only significant under certain circumstances. Also, it is higher degree centrality in the firm network that significantly increases R&D success.     

International relocation and production geography in the European automobile components sector: the case of Spain

This article, based on the various approaches to location theory, analyses relocation processes in the Spanish automobile components industry in order to explain the importance of internal factors at both corporate and production plant levels. While acknowledging that location advantages play a relevant role, we show that changes in production geography can, to a great extent, be explained by corporate strategies, other decision-making mechanisms and firms’ characteristics. The results obtained from an empirical study during the period 2001–2008 show that the search for lower labour costs and corporate restructuring in order to achieve global production efficiency are the main factors determining relocation in the Spanish sector. These processes are facilitated by the operational flexibility of the multinational firms that dominate the sector. Lean supply and technological requirements are the main barriers to such processes of production plant mobility. From the point of view of practical relevance, the article shows that these logistic and technological determinants should be considered by managers in their relocation decisions not only in terms of cost efficiency but also in terms of the risks involved in relocation processes. Any relocation project must include measures to mitigate such risks.     

Exploring the determinants of renewable energy innovation considering the institutional factors: A negative binomial analysis

Replacing traditional energy sources with renewable energy sources is an effective way to achieve emission reduction targets. Focusing on OECD countries from 1990 to 2018, this study examines the determinants of renewable energy innovation by applying a negative binomial model. There are four main findings: (1) Renewable energy patents show an inverted U-shaped curve, peaking in 2010; solar energy accounts for the largest share of patents; and the US is the largest renewable energy innovator, followed by South Korea and Germany. (2) Renewable electricity installed capacity, share of expenditure on research and development (R&D) of GDP, and implementation of the Kyoto Protocol are all found to promote innovation; by comparison, the proportion of renewable energy power generation of the total electricity generating capacity shows a negative effect. The price of crude oil shows no significant effect due to the offset effect between the European and non-European country groups. (3) Share of R&D expenditure of GDP is confirmed to be the force driving technological progress in the solar, geothermal, and marine sectors, and it plays a more important role in Japan than in the US or Europe. Implementation of the Kyoto Protocol has no significant effect on innovation in European countries. (4) Three institutional factors—namely, the legal system and property rights; regulations; and freedom to trade internationally—are confirmed to be the driving forces, whereas this is not the case for the growth and free circulation of money. Policy implications for the optimization of the renewable energy sector's structure, the enhancement of renewable energy capacity, and the improvement of R&D investment and the institutional environment are proposed. Future research should shed light on a broader sample, using micro-level and socio-technical analysis.     

Automation in the future of public sector employment: the case of Brazilian Federal Government

What is the impact of automation on public sector employment? Using machine learning and natural language processing algorithms, this study estimates which occupations and agencies of the Brazilian Federal Government are most susceptible to automation. We contribute to the literature by introducing Bartik Occupational Tasks (BOT), an objective method used to estimate automation susceptibility that avoids subjective or ad hoc classifications. We show that approximately 20% of Brazilian public sector employees work in jobs with a high potential of automation in the coming decades. Government occupations with lower schooling and lower salary levels are most susceptible to future automation.     

Adoption readiness in service innovation: the case of digital money

One challenge for firms seeking to develop new services is to understand the conditions likely to affect the rates of adoption. Understanding relative degrees of ‘adoption readiness’ provides innovators with information to choose market segments and indicates opportunities to influence adoption environments. However, there is a little research into the adoption readiness of countries upon which firms can base their new service development decisions. This paper considers these issues through the case of digital money, a service innovation some claim to have the potential to provide major economic and social benefits. Defined as ‘currency exchange by electronic means’, we conceptualise digital money as a socio-technical system, and propose a Digital Money Readiness Index. This composite index integrates institutional, financial, technological, economic, industrial and social attributes to measure adoption readiness. We identify four stages of readiness and systematically analyse the factors that drive under or over adoption of digital money technologies.     

Radio waves,memories, and the politics of everyday life in socialist Romania: The case of Radio Free Europe

During the communist era, Radio Free Europe (RFE) was Romania's favorite radio station. This paper analyzes the role of RFE in everyday life in the strictly controlled Romanian communist state by looking at the broadcasts of RFE's Romanian Department, their audience, and their impact. Drawing largely on the RFE archives at the Vera and Donald Blinken Open Society Archives (OSA) and the former secret police files at the National Council for the Study of the Securitate Archives (CNSAS), it investigates how radio waves mediated and channeled information while preparing people to embrace political and cultural change. The paper focuses on the circulation of knowledge, media confluences, and human agency. The rituals that developed around the secrecy which governed the listening process, the personal requests, attitudes, and opinions expressed in letters to RFE, and oral and written testimonies, coupled with the disproportionate and, at times, extreme reactions of the communist state, together reveal the carving out of individual spaces that allowed for the preservation of the “self” during Nicolae Ceausescu's dictatorship. At such critical historical moments, the connection became visible. Through an analysis of recent media representations in which RFE figures, such as Cold Waves, this study also looks at how RFE shaped personal memories of communist times.     

The Territorial Impact Assessment of transport: the case of the Egnatia motorway system in the cohesion potential of Southeast Europe

Territorial Impact Assessment (TIA) is proposed as a critical tool in order to investigate the way policies affect spatial development and hence territorial cohesion. The paper introduces a TIA methodological model in relation to transport sector. The design of the methodological model is based on a quantitative evaluation framework that comprises a set of selected indicators applied in a cross-border area of southeast Europe, influenced by the operation of the Greek motorway system of Egnatia and its vertical axes. The indicators are grouped into three main fields of TIA, i.e. transport intermodality, polycentric spatial organization and cross-border territorial cooperation. The TIA’s indicators are approximated by quantitative analysis. The procedure concludes to an overall composite indicator measuring the ‘level of territorial cohesion’ along with some core results and the expected added value. It also highlights some key technical aspects about the routines used and proceeds to suggestions for further refinement.     

Launch of a product and patents: evidence from the US cardiovascular pharmaceutical sector

ABSTRACT

Recent literature on the role of patents in shaping competition between incumbents and new entrants shows mixed evidence, as patents can discourage entry into markets but may also encourage potential entrants by increasing profitability from research and development. The increasing use of patents as strategic weapons motivates this investigation of the impact of innovation on competition. In a case study of US pharmaceutical cardiovascular submarkets over the period 1988–1998, we use a panel probit model to study the impact of a firm’s patents and rivals’ patents in the firm’s decision to launch new products. Our results show that the number of a firm’s lagged patents encourages the firm’s entry with new products, while rivals’ initial stock of patents discourages entry, but more recent patents promote entry by opening new technological opportunities.     

The environmental impact assessment auditing process in Greece: evidence from the prefectural level

This paper outlines a sociological perspective on the usefulness of economic models in assessment and policy-making. It combines an overview of the history of macro-economic modelling research in the UK with insights drawn from the author's own research into the economic forecasts and policy recommendations made by the Panel of Independent Forecasters to the UK Government during 1993. It argues that one of the most important achievements of the Panel was to communicate some of the diversity and excitement of its economic (and econometric) models. The more recent policy of giving operational responsibility for interest rate decisions to the Bank of England may have the opposite effect, and creates the potential for a ‘closed’ institutional space within which a particular economic analysis may be uncritically accepted.     

Risk management framework for outsourcing in the defence sector: a case from India

A nation automatically becomes strong if it has self-sufficiency to fulfil its defence requirements. India is moving in the direction to attain self-reliance in the defence sector. The aim of this paper is to analyse the critical issues faced in outsourcing by an organisation in Indian Defence Sector and extend easy, quick, complete and practically implementable risk mitigation strategies for enabling better decision-making. In this research, a list of 20 risk criteria is finalised on the basis of the literature survey and expert’s opinion. Analysis in this research shows that, three criteria which can seriously affect the outsourcing are Material shortage risk, Quality Risk and On-time delivery risk. The paper employs an integrated framework which includes ‘Grey Theory, Failure Mode and Effect Analysis (FMEA) and Risk Management Matrices’ for a comprehensive risk management in the defence sector. The paper delivers a 10-point risk management action plan to counter the various problems faced during outsourcing in the defence sector, especially in the Indian context. In brief, this paper investigates the various important issues related to outsourcing, which are faced by organisations working in Indian Defence Sector and extends a practically implementable methodology to derive a practically amicable solution for the case organisation.     

Globalization at the nano frontier: The future of nanotechnology policy in the United States, China, and India

The field of nanotechnology offers the possibility of transforming the international science and technology (S&T) policy landscape and making a significant impact on the direction of research and development for a wide range of nations and companies. Nanotechnology endeavors in the United States, China, and India remain some of the most interesting because of the opportunities and challenges this field poses for future competition and collaboration between these three nations. This paper examines how nanotechnology will raise new science and policy questions—and lead to new strategic linkages—that will have a major impact on the futures of these nations for decades to come. Then the paper analyzes and compares the current state of nanotechnology in these three countries, discusses some of the main drivers of collaboration, investigates current and potential uncertainties associated with nanotechnology, and offers policy suggestions on ways that these difficulties may be addressed.     

Does quality matter for innovations in low income markets? The case of the Kenyan mobile phone sector

Growing interest in lower income groups as consumers in emerging and developing markets has led to discussion on the issue of product quality, but so far work has generally focussed on simple goods rather than technology and innovations. However with innovations, one would expect that product quality would be more crucial in order to push trust of complex products amongst inexperienced users. Thus, this paper seeks to build understanding around issues around quality of innovations; focussing on what quality declines mean for vulnerable low income groups, and the types of policy approach that can be undertaken to improve quality.Research was undertaken in the mobile phone sector in Kenya where firms have increasingly focussed on diffusion amongst low income consumers. Here it was found that quality has become an increasing contested and problematic terrain. In the short term, decline in quality is often acceptable for inexperienced low income users, but in the longer term this becomes detrimental to innovations both in terms of trust and expense amongst consumers, as well as effecting the livelihoods of informal entrepreneurs who are often part of delivery of innovations to low income groups.Policy around quality was found to be present, but was limited by two key tenets. First, where implementation actors were unclear, public standards on quality tended to collapse into private standards followed only by diligent firms. Second, standards were often applied at a firm level which missed out on issues emerging amongst downstream diffusion actors often involved in adaptations which linked to quality variability.Undertaken and focussed correctly, policy on product quality drives diffusion of innovation and supports a level playing field, which in the long term supports more inclusive innovations. A lack of focussed policy can lead to the risk of rejection of innovation and ‘big bang’ policy interventions that are detrimental to the trust in innovations amongst low income groups.     

The influence of national culture on responsible innovation: A case of CO2 utilisation in Indonesia

Responsible innovation (RI) offers a promising step towards a more responsible adoption of innovations, such as new and emerging technologies. However, how RI would be practised in different cultural contexts and settings is still less studied, especially in the context of developing countries. Taking the utilisation of CO₂ in Indonesia as an empirical case, the purpose of this paper is to explore this issue through examining the influence of key characteristics of Indonesia's national culture on core dimensions of RI: anticipation, reflexivity, deliberation, responsiveness and participation. The different RI dimensions are applied in practice in a focus group discussion (FGD) and a round of interviews with different stakeholders that explored CO₂ utilisation in the country. Hofstede's classification of national cultural dimensions is used to single out key focus points for attention in these RI processes in the Indonesian context. The results from the experiment illustrate that culture matters in the application of RI dimensions in practice. In the sense that in order for RI to work well, the governance of core RI processes such as participation and deliberation has to be adjusted to social norms of what is considered legitimate, desirable and good behaviour. These norms differ across societies. The findings further suggest ways of applying RI dimensions in practice.     

Age replacement policy in the case of no data: the effect of Weibull parameter estimation

Age replacement is a common maintenance policy when wear-out failures occur, and it is characterised by periodic replacement of components. Data on time to failure (TTF), often modelled with the Weibull function, are necessary for estimating optimal replacement intervals to minimise the total maintenance costs. In many cases, such as new components, new machines or new installations, no TTF data are available, so the Weibull parameters and optimal replacement interval cannot be estimated. To overcome this problem, these parameters can be assessed from the experience of the maintenance engineers and technicians. The aim of this study is investigating the relationship between the error in parameter estimation and additional maintenance costs related to this error. Analysis of variance (ANOVA) and multifactorial analysis are carried out for investigating the influence of these estimations on the final costs. Economic decision maps are introduced for supporting maintenance engineering in defining the maintenance policy with minimal additional cost in the case of no data being available. The analysis shows that, when no data are available, the application of the age replacement policy can result in a global saving of more than 50% compared with corrective maintenance.